The way some people talk about money reveals that they believe the government creates and therefore has an inherent right to control wealth. However, government does not create wealth. This fact can be easily proven.
Why doesn’t the federal government print a trillion dollars for each of us and give us the money? If the government did this how much would a loaf of bread cost?
The answers to these questions can be easily found. This experiment has already been done in real time in Zimbabwe and the Wiemar Republic. If you Google these governments you will find that rampant inflation occurred. The money became worthless. Wheelbarrows full of cash were required to buy a loaf of bread.
By the way, would you happen to have a wheel barrow full of cash laying around? No? Well then you might understand why some people object to the government running up trillion dollar deficits and paying them off by simply printing the money. There is an old saying that those who fail to remember history are doomed to repeat it.
We have seen this movie. We know how it ends. The Wiemar Republic became the Nazis and they started World War II. Oddly enough, some folks don’t want to see that particular movie again. At least not with themselves in the starring roles.
I have heard the argument that George Bush did a lot of deficit spending. If it was a good idea when he did it then why is it not a good idea now?
Since when was George Bush made an economic genius? Excuse me but are you saying that George Bush was the smartest man in the history of the planet so any economic theory he employed must be correct?
Trillion dollar deficits were a mistake on George Bush’s watch and they are a mistake now.
The whole world is threatening to unpeg itself from the dollar. Printing money or even borrowing trillions from China makes this eventuality even more likely.
Why do you care? The next time you go to a store like Walmart, look at where all the goods come from. Now suppose they no longer wanted dollars for the stuff you buy. Where would you get your stuff then? The oil we use to make gas comes from people who used to take dollars for the oil. Now suppose they didn’t.
The best case scenario is that other nations would decide our fate. We would no longer be in control. These other nations would look at our trillions of dollars of debt and our deficit spending and they would mark the dollar down. How far down? Who knows. Remember, we lost control.
The worst case scenario? Break out the wheel barrow. Oh. Right. You don’t have wheelbarrows full of cash lying around to buy that loaf of bread. Never mind. I hear they eat grass in North Korea.
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